Further Thoughts on Mega-Accounting and the Need for Standards

Abstract

This paper continues previous research (Mathews 1984, 1997b, 2000a, 2000b, 2003) into developinga proposal for a system of comprehensive reporting based on a concept called megaaccounting.The ideas in mega-accounting are similar to those behind GRI (2002) and triplebottom line (TBL) reporting (Elkington 1997), but with a different underlying philosophy, asocial contract approach compared to one based on organisational legitimacy or the need formanagement to drive sustainability and sustainable capitalism which is sometimes called ‘thebusiness case’. The paper attempts to develop the concept of mega-accounting by identifyingthe purpose underlying the reports, identifying the basis of a conceptual framework and providingan indication of the content that social and environmental accounting reports may include inthe future. Of necessity the research perspective is normative and deductive, as is much of theprocess of developing accounting standards, the model upon which it is argued social and environmentalaccounting should be based. The paper concludes by reiterating that the way forwardfor social and environmental accounting and reporting is for a conceptual framework to beagreed and standards developed via a normative-pragmatic process that will provide the basisfor comprehensive, audited, corporate reports encompassing the social, environmental and economicdimension. Furthermore, additional work is needed on the areas of macro-social accountingand externalities in order to develop a comprehensive framework. Copyright © www.iiste.org